Why is compliance with ARMICS important to the Commonwealth?

The Commonwealth of Virginia has designed ARMICS to achieve the following objectives:

  1. Strategic: support for "being recognized as the best-managed state in the nation" through internal control best practice:
  2. Operational: effective and efficient use of fiscal resources and other assets
  3. Reporting: integrity and reliability of financial reporting
  4. Compliance: compliance with applicable laws and regulations
  5. Stewardship: protection and conservation of assets

To meet these standards, an agency (e.g., UVA) must demonstrate that it has five internal control components established and fully functioning:

  1. Control Environment,
  2. Risk Assessment,
  3. Control Activities,
  4. Information and Communication, and 
  5. Monitoring.